Gate.io Faces Insolvency Rumors Amidst Multichain Complications
Cryptocurrency Exchange Addresses Speculation as Multichain Woes Fuel Concerns
Tue, 06 Jun 2023, 05:18 am UTC
Gate.io, a prominent digital asset exchange, has issued a warning of potential legal actions as rumors of insolvency swirl around the platform. Speculation linking Gate.io to Multichain, a cross-chain protocol currently grappling with complications, has fueled the chatter within the cryptocurrency sphere.
In a recent Twitter post originally in Turkish, Gate.io addressed the rumors, stating, "We present the information to all our users. Please do not give credibility to false and baseless rumors."
Concerns surrounding Gate.io's solvency emerged following a series of incidents tied to Multichain. Starting from May 24, the cross-chain protocol faced technical challenges when a node issue caused transaction delays. In an unexpected turn, Multichain's team revealed that they were unable to contact their CEO to regain control of the servers and resolve the problem. This revelation further fueled rumors that the protocol's leader had been detained and that Chinese officials had seized an astonishing $1.5 billion worth of smart contract assets.
On the same day, May 24, blockchain analytics company Arkham Intelligence reported a significant influx of Multichain tokens (MULTI) originating from the Gate.io platform.
Gate.io, however, dismissed claims of liquidity challenges on May 31, emphasizing that their operations were in "robust health" and that withdrawal operations remained unaffected. Despite users sharing accounts of fund withdrawals on platforms like Twitter and Telegram, the trading volume on the exchange has remained relatively stable in recent days.
In response to the ongoing problems plaguing Multichain, other cryptocurrency exchanges have taken precautionary measures. Binance halted deposits for 10 bridged tokens across the BNB Smart Chain, Fantom, Ethereum, and Avalanche networks on May 25. Additionally, an interruption in transaction operations prompted the Fantom Foundation to remove approximately 450,000 MULTI tokens (equivalent to roughly $2.5 million) from the liquidity on the decentralized exchange platform, SushiSwap.
The situation surrounding Gate.io and the implications of its alleged connection to Multichain continue to unfold, leaving investors and cryptocurrency enthusiasts closely watching for further developments.
<Copyright © TokenPost. All Rights Reserved. >